Wednesday, April 17, 2013

Prodigy Oil and Gas | Oil production in US hits 20 year high

Oil production in US hits 20 year high

Prodigy Oil and Gas. According to the U.S. Energy Information Administration (EIA), during November and December of 2012, the average daily crude oil production for the United States hit a 20 year high.
The increased output from states such as Texas, Oklahoma and North Dakota, to name a few, helped push the daily production to more than 7 million barrels per day, which is the highest mark since December 1992.

Industry groups, as well as congressional Republicans, have asked President Obama to open more federal lands to oil and gas development. They are claiming that by doing so it would enhance federal revenues while also encouraging economic growth.
The groups point out that most of the nation’s oil and gas boom has been occurring on private and state lands, giving places like North Dakota, Texas and Oklahoma an economic boost.
They also have pointed out examples like North Dakota’s Bakken formation as a reason to expand drilling access on federal lands as well as Oklahoma’s Osage County as an example of expansion in private lands.
However, at this point, Obama has said oil and gas production already is rising under his watch, and has given no indication that he plans to open more federal lands for drilling.
The groups continue to explain that by opening up both federal and private lands to drilling, Texas and North Dakota increased oil production considerably in recent years. In 2009, Texas and North Dakota combined to produce less than 24% of America’s domestic crude oil. By December 2012 if you considered those two states a country, they would have been the 9th largest producer of oil in the world. They now produce 42% and 43% of the United States crude oil.
While Obama is correct, oil and gas production has risen recently, the groups argue that for the economy to feel any real economic boon, the trend must continue and the bottom line is that significant increases in oil and gas production will deliver a powerful economic stimulus to the US economy by bringing; a) thousands of new shovel ready jobs to the states such as North Dakota, Texas and Oklahoma, b) billions of dollars in new investments to those states, and c) billions of dollars in royalty payments to private landowners.
To accomplish this though, the groups feel that the “handcuffs” need to be relaxed or removed by the current administration, which so far has been reluctant to do so.

No comments:

Post a Comment